Guide to File your Income Tax Return in India

What is Tax?

A compulsory contribution to state revenue, levied by the government on general public’s income and business profits, or added to the cost of some goods, services, and transactions.

What is Income Tax?

An income tax is a tax that governments impose on financial income generated by all the individuals and entities within their jurisdiction. By law, businesses and individuals must file an Income Tax Return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

Who Should File Income Tax Return?

Every Company, Firm, LLP, BOI, Societies, Trusts, and other persons irrespective of whether having Income or Loss during the previous financial year.

Why should a person file income tax?

Foreign travel is possible only through VISA and VISA is possible only through submission of IT returns as one of the documents.

Quick registration of immovable properties in some of cities of India.

It is a standard proof of income of a person which establishes record with the tax department.

You Can Claim refund of your taxes paid in excess of your tax liability.

Prerequisites for filing income tax return:

PAN Card

Aadhaar card (To be linked to PAN Card for E verifying the return)

Mobile number and an Email ID

Form 16 issued by employer for salaried Employees

Bank Statements for Savings Bank Interest

Interest Income statement on fixed deposits

TDS Certificates issued by banks and others

Form 26 AS which can be downloaded from TDS Traces website

Other documents for claiming deductions such as investments, LIC, Tuition fees, etc.

By Filling up the required details at EZTax.in site and uploading the documents mentioned above we will do the filing work on behalf of you without any errors so that you can rest assured.

Income Tax Return forms:

Basically there are 7 different IT forms used to file Income Tax Returns as per their applicability to a person’s source of Income

We here at EZTax.in automatically choose the correct form applicable to our clients based up on the information filled by them, thus avoiding the confusion of clients in choosing the correct form applicable to them.

This is a common mistake tax payers undergo.

Following are the details of 7 IT Forms used to file IT Returns provided for your information purpose:

Form No.: ITR-1 (SAHAJ):

For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income up to Rs.50 lakh.

Form No.: ITR-2:

For Individuals and HUFs not carrying out business or profession under any proprietorship.

(This form can be used by individuals & HUF who are not eligible to file ITR-1 and whose income is not chargeable under head Business or Profession).

Form No.: ITR-3

For individuals and HUFs having income from a proprietary business or profession.

(This form can be used by individuals & HUF who are carrying out a proprietary business or Profession).

(This Return Form is to be used by an individual/ HUF/ Partnership Firm whose total income includes Business income is computed under section 44AD & 44AE & income from profession is computed under section 44 ADA).

Form No.: ITR-5

(This Form can be used by a person being a firm, LLPs, AOP, BOI, artificial juridical person, cooperative society, registered societies and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4F) shall not use this form).

Form No.: ITR-6

This Form can be used by a company, other than a company claiming exemption under section 11 (Income from property held for charitable or religious purposes).

Form No.: ITR-7

For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).

Income Tax Rates:

EZTax.in automatically calculates the tax liability of a person including the fines and penalties payable if any. Thus it avoids the burden of an individual to calculate the amount of tax payable and preventing the errors in calculation.

Following are the few example of tax rates applicable to Individuals, companies, and other persons.

For Individuals & HUF:

Income Tax Slab for Individuals & HUF Tax Payers both Men and Women aged upto 60 years (for AY 2017-18):

Income Tax Slab

Rate

Up to Rs.2,50,000

No tax

Rs.2,50,000 to Rs.5,00,000

10%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

Surcharge:

15% of income tax, where total income exceeds Rs.1 crore.

Education Cess

3% of total income tax payable + surcharge

Income Tax Slab for Individuals & HUF Tax Payers who are Senior Citizens including both men and women (for AY 2017-18)

Income Tax Slab

Rate

Up to Rs.3,00,000

No tax

Rs.3,00,000 to Rs.5,00,000

10%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

Surcharge:

15% of income tax, where total income exceeds Rs.1 crore.

Education Cess

3% of total income tax payable + surcharge

Income Tax Slab for Individuals & HUF Tax Payers who are super Senior Citizens including both men and women (for AY 2017-18)

Income Tax Slab

Rate

Up to Rs.5,00,000

No tax

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

Surcharge:

15% of income tax, where total income exceeds Rs.1 crore.

Education Cess

3% of total income tax payable + surcharge

Income Tax Slab for Individual & HUF Tax Payers both Men and Women aged upto 60 years for AY 2018-2019:

Income Tax Slab

Rate

Up to Rs.2,50,000

No tax

Rs.2,50,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

Surcharge:

10% of income tax, where total income exceeds Rs.50 lacs, 15% of income tax, where total income exceeds Rs.1 crore.

Education Cess

3% of total income tax payable + surcharge

Income Tax Slab for Individuals & HUF Tax Payers both Men and Women aged above 60 years, and upto 80 years (Senior Citizen) for AY 2018-2019:

Income Tax Slab

Rate

Up to Rs.3,00,000

No tax

Rs.3,00,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

Surcharge:

10% of income tax, where total income exceeds Rs.50 lacs, 15% of income tax, where total income exceeds Rs.1 crore.

Education Cess

3% of total income tax payable + surcharge

Income Tax Slab for Individuals & HUF Tax Payers both Men and Women aged above 80 years (Super Senior Citizen) for AY 2018-2019:

Income Tax Slab

Rate

upto Rs.5,00,000

0%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

Surcharge:

10% of income tax, where total income exceeds Rs.50 lacs, 15% of income tax, where total income exceeds Rs.1 crore.

Education Cess

3% of total income tax payable + surcharge

Partnership Firms and LLPs (Limited Liability Partnerships):

They are to be taxed at the rate of 30%.

Plus

Surcharge:If income is greater than Rs.1, 00, 00,000 – 12% of income tax amount. Subject to marginal relief.

Education Cess:2% extra – charged on the amount of income tax + surcharge being paid.

Secondary and Higher Education Cess:1% extra – charged on the amount of income tax + surcharge being paid.

For Domestic Companies:

Domestic Companies are to be taxed at the rate of 30% *.

Plus

Surcharge:If income is greater than Rs.1,00,00,000 – 7% of the income tax amount. If income is greater than Rs.10,00,00,000 – 12% of the income tax amount. Subject to marginal relief.

Education Cess:2% extra – charged on the amount of income tax + surcharge being paid.

Secondary and Higher Education Cess:1% extra – charged on the amount of income tax + surcharge being paid.

* The details given above are in broader sense and may vary from case to case.

For Foreign Companies:

Nature

Rate

If the income received by the Foreign Company is in the form of royalties paid by the Indian Government in relation to agreements made with an Indian concern (after March 31st, 1961, and before April 1st, 1976)

50%

If the income received is in the form of fees for technical services rendered for agreements made with Indian concerns (after February 29th, 1964, and before April 1st, 1976)

50%

Any other income

40%

Plus

Surcharge:If income is greater than Rs.1,00,00,000 – 2% of the income tax amount. If income is greater than Rs.10,00,00,000 – 5% of the income tax amount. Subject to marginal relief.

Education Cess:2% extra – charged on the amount of income tax + surcharge being paid.

Secondary and Higher Education Cess:1% extra – charged on the amount of income tax + surcharge being paid.

For Co-operative Societies:

Income Tax Slab

Rate

Up to Rs.10,000

10%

Rs.10,000 to Rs.20,000

20%

Over Rs.20,000

30%

Plus

Surcharge:If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.

Education Cess:2% extra – charged on the amount of income tax + surcharge being paid.

Secondary and Higher Education Cess:1% extra – charged on the amount of income tax + surcharge being paid.

Verifying the return filed:

After filing the return an acknowledgement will be generated and the assesse needs to verify the return filed either electronically or manually.

Verification can be done electronically by using the most common way of OTP generated using Aadhar

Manually a return can be verified by sending a signed copy of acknowledgement generated after filing return to Income Tax Department - CPC, Post Box No - 1, Electronic City Post Office, Bangalore- 560100, Karnataka, India.

Checking the status of return filed:

After Verification of ITR V assesse needs to check the status of filing of ITR to know whether the ITR is processed and refund has been credited to the bank account.

By Using the Facilities provided by EZTax.in a taxpayer can easily file the return online without any errors and confusion.

After creating the account you can avail the services mentioned below:

Using Self Service Tax Filing an individual/HUF can E-file the return for current assessment year and the previous assessment year.

While filling the form, in case any doubts arises the assesse can look at the EZHelp fields provided at the right side of the form which explains the assesse the details which are required to be filled. We have nearly 300 such EZHelp fields which guides assesse throughout the filling of the form.

While filling the return form but before filing it, there is an option called Creative Audit using which an individual/HUF can check whether all the required/ mandatory details have been filled up and it compares the Personal information entered by the client with that of the standard details available in documents such as Form 16, Form 26AS.

There is another option called Tax optimizer which suggests the assesse where can he invest for reducing the tax liabilities.